The report mentioned Mr. Corzine's name a total of 284 times—an average of more than once per page—and concluded that he and his management team engaged in "negligent conduct."
MF Global's collapse and the loss of an estimated $1.6 billion in
customer money was triggered by former CEO Jon Corzine's poor
management decisions and lax protections for customer funds, a
congressional investigation has determined.
The findings of the House Financial Services Subcommittee on Oversight will be spelled out in a report to be released on Thursday.
In a preview of the report, the panel's chairman, Rep. Randy Neugebauer, said on Wednesday the evidence unearthed by the committee puts the blame squarely on Corzine, who has denied any wrongdoing.
"The responsibility for failing to maintain the systems and controls necessary to protect customer funds rests with Corzine," the report says. "This failure represents a dereliction of his duty as MF Global's chairman and CEO."
The 174-page document, filed shortly after
midnight Thursday in a federal bankruptcy court by former Federal Bureau
of Investigation chief Louis J. Freeh, represents the most thorough
look into management's role in MF Global's failure—and the toughest yet
on Mr. CorzineThe findings in the report could help decide how much money Mr.
Corzine and others potentially have to pay to settle private cases from
MF Global customers and creditors in coming months. Those settlement
talks are heating up, with a meeting scheduled with a court-approved
mediator next week, according to people familiar with the plans.
Mr. Corzine, a former Goldman Sachs Group Inc.
GS -1.58%
chairman who was brought in to rejuvenate MF Global in 2010, relied on his Wall Streetbackground to transform the sleepy brokerage into a high-octane
trading firm. But the company lacked the cash-management procedures,
risk controls or manpower to properly oversee itself, Mr. Freeh said in
the repoMr. Corzine's decision "to expand MF Global's
proprietary trading may have appeared sound in a vacuum, but in the
reality of the business Corzine and his management team inherited…this
strategy was disastro
The findings of the House Financial Services Subcommittee on Oversight will be spelled out in a report to be released on Thursday.
In a preview of the report, the panel's chairman, Rep. Randy Neugebauer, said on Wednesday the evidence unearthed by the committee puts the blame squarely on Corzine, who has denied any wrongdoing.
"The responsibility for failing to maintain the systems and controls necessary to protect customer funds rests with Corzine," the report says. "This failure represents a dereliction of his duty as MF Global's chairman and CEO."
The 174-page document, filed shortly after
midnight Thursday in a federal bankruptcy court by former Federal Bureau
of Investigation chief Louis J. Freeh, represents the most thorough
look into management's role in MF Global's failure—and the toughest yet
on Mr. CorzineThe findings in the report could help decide how much money Mr.
Corzine and others potentially have to pay to settle private cases from
MF Global customers and creditors in coming months. Those settlement
talks are heating up, with a meeting scheduled with a court-approved
mediator next week, according to people familiar with the plans.
Mr. Corzine, a former Goldman Sachs Group Inc.
GS -1.58%
chairman who was brought in to rejuvenate MF Global in 2010, relied on his Wall Streetbackground to transform the sleepy brokerage into a high-octane
trading firm. But the company lacked the cash-management procedures,
risk controls or manpower to properly oversee itself, Mr. Freeh said in
the repoMr. Corzine's decision "to expand MF Global's
proprietary trading may have appeared sound in a vacuum, but in the
reality of the business Corzine and his management team inherited…this
strategy was disastro
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